Monday, May 20, 2013

Gold and Silver Market - short term volatility

Last night in thin trading on Asian markets silver prices plunged 10% in 4 minutes and then quickly recovered most of that drop.

Who sells enough silver in a low volume market to crash the price so much so quickly?  Not a rational seller who is trying to maximize total sale price.  This is another data point showing manipulation in precious metals markets.  Seems that the manipulators are getting desperate which portends big things.  It's about time.  

No one really knows exactly what 'big things' are in the offing.  One thing that I suspect is that that paper gold and silver funds, such as GLD and SLV  and derivatives will default.  They will default in the sense that the funds and contracts will be discovered to have much less physical bullion than should be allocated to each owner.  Then the funds will force cash settlement with owners.  The cash settlement will be at the market price in the days just before the default.  The default will likely cause prices for physical to jump up since it will be revealed that physical gold and silver supplies are lower than previously thought.  Are prices currently being suppressed in preparation for default?  

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